Solar photovoltaic (PV) Market: Overview
The global solar photovoltaic (PV) market size was worth USD 152.5 billion in 2021 and is estimated to grow to USD 203.2 billion by 2028, with a CAGR of approximately 4.90 percent over the forecast period.
Solar energy is utilized to turn sunlight into electricity utilizing photovoltaic effect technology. These PV systems are the most dependable and readily available renewable energy source. Fossil fuels are responsible for significant environmental pollution, and solar energy offers a viable alternative to fossil fuels. The demand for renewable energy is quite large, and the unit cost of silicon-based cells is decreasing; these are the key reasons positively impacting this industry. Furthermore, the world’s reliance on power is steadily expanding. The requirement for sustainable and uninterrupted power supply is projected to stimulate demand for solar PV systems. These factors are projected to drive market growth in the coming years.
The COVID-19 pandemic may hurt the solar photovoltaic (PV) market due to the shutdown of important industries and the scarcity of raw materials. Restrictions are imposed in place as a result of the development of the pandemic and the quick increase in cases. The suspension of production and the closing of businesses will probably increase demand for the goods. Additional factors that will likely encourage the adoption of the product include the use of lower capacity, part-time shifts, and production equipment. These elements will probably encourage market expansion during the pandemic.
Solar photovoltaic (PV) Market Drivers:
The last few years have seen a significant rise in power use. Power consumption has increased due to robust economic expansion, expanding population, and the burgeoning manufacturing industry. The expansion and infrastructure development in developing economies lead to strong demand for power. The need for energy generation rises due to urbanization, industrialization, and improving people’s living standards. In response to the rising global demand for electricity, many nations are expanding their existing power plants or constructing new ones to increase their capacity for producing power. The focus is shifting to the renewable sector, notably solar photovoltaic power, due to the government’s strict enforcement of carbon emission standards in many nations. This is anticipated to propel this market toward expansion throughout the projected time.
Solar photovoltaic (PV) Market: Restraints
Utility-scale solar projects demand a sizable land-based power source. Numerous environmental or technical factors may impact the choice of such land. The usage of such land may impact the biodiversity and natural regions for the installation of solar systems. For instance, due to the soil’s instability and inaccessibility, deploying solar photovoltaic plants is highly challenging in marshes, agricultural land, water bodies, and forests. Large-scale solar-powered power plants must consider several variables, including land, transportation networks, the effects on nearby residential areas, and distance from the electrical grid. The constraints above limit the expansion of the worldwide solar photovoltaic (PV) industry.
Solar photovoltaic (PV) Market: Segmentation
The global solar photovoltaic (PV) market has been segmented into technology, grid type, installation, and application.
Based on technology, the market is divided into monocrystalline silicon, thin film, polycrystalline silicon, and others. Among these, the thin film segment led the market in 2021 and is expected to maintain its dominance throughout the forecast period due to its slender construction, high durability, and use of flexible and lightweight materials during manufacturing. Thin-film solar PV panels are widely used in industrial and utility-scale projects because they are inexpensive and lightweight. Besides this, the monocrystalline category is expected to grow fastest throughout the forecast period. Solar rooftop systems more frequently use monocrystalline silicon solar panels. For massive solar PV projects, these panels are frequently chosen. These solar panels are employed in various industrial, commercial, and residential fields.
Based on grid type, the market is classified into on-grid and off-grid. In 2021, the on-grid category dominated the global market because more utility-scale projects were undertaken globally. An on-grid solar photovoltaic system uses solar energy to produce electricity and is connected to a utility grid. Small home units and huge utility-scale solar photovoltaic-producing stations are included in the on-grid system. Off-grid technologies are being adopted in rural regions at an accelerated rate. On the other hand, the off-grid category is anticipated to grow significantly over the forecast period. The utility grids are not linked to the off-grid systems. The off-grid market is expanding quickly since it is increasingly being used worldwide in rural areas and other places where grid connectivity is unavailable.
Solar photovoltaic (PV) Market: Regional Landscape
In 2021, Asia Pacific dominated the solar photovoltaic (PV) market. Increased demand for more power production capacity, sustained international engagement, attracting foreign direct investment, and adopting capacity quota targets will all benefit technological acceptability. Over the last few years, China’s solar photovoltaic industry has risen faster than any other country in the region. China’s solar energy capacity reached 253 GW in 2020, representing a 24.1% increase over the previous year’s value. Furthermore, future solar PV projects, favorable government policies, and falling costs of solar PV modules and associated systems will likely fuel the region’s solar PV market throughout the projection period.
Solar photovoltaic (PV) Market: Competitive Landscape
Some of the main competitors dominating the global solar photovoltaic (PV) market include- Tata Power Solar Systems Ltd., Canadian Solar Inc., Wuxi Suntech Power Co. Ltd, Nextera Energy Sources LLC, BrightSource Energy Inc., SunPower Corporation, Vivaan Solar, Waaree Group, Trina Solar and Jinko Solar.
- July 2021: Waaree Energies claimed to have successfully launched 300+MW solar modules for the Aquamarine Solar PV project. For installation in WSP, the business provides Mono PERC Solar PV modules.
- June 2021: NTPC awarded an engineering, procurement, and construction (EPC) contract to Tata Solar Power to build a solar project with an installed capacity of 210 MW.
The global Solar photovoltaic (PV) Market is segmented as follows:
- Monocrystalline Silicon
- Thin Film
- Polycrystalline Silicon
By Grid Type
- Ground Mounted
- North America
- United States
- United Kingdom
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America